Around a third of UK adults do not have any funds set aside that they could use in an emergency, a survey has revealed.
In addition, the poll from National Savings and Investments discovered that many people would rather go into debt than use the money they do have stashed away.
It showed that 17 per cent would take out a loan in emergency circumstances, while 12 per cent would apply for a credit card if they needed to unexpectedly access extra cash.
These choices could lead to people requiring debt help in the future if they cannot meet repayments.
“We all face the possibility of situations that we simply have no control over – so it’s essential that we are all prepared,” commented senior savings strategist Dax Harkins.
The study found that less than a tenth (nine per cent) of Brits feel they could support themselves for a month if an emergency occurred.
Meanwhile, the low level of savings rates is leading people to pay off their debts rather than stash money away, Vicky Redwood from Captial Economics has said.
By Jamie Price